Realizing that the fast-food business is more profitable when located in urban areas in order to entice higher customer volume; thus, KFC-J relocated to Tokyo, which has a higher volume of people, therefore increasing the chances of the store to attract potential customers. Apart from changes in the store location, KFC-J also decided to change its store size into half the recommended store size in the U.S. Despite the expensive cost of space rental and limited space in Tokyo, KFC-J thrived because it is accessible to people who are most likely to patronize fast food items. Knowing the Japanese appetite also helped Weston and Ohkawara introduce changes in the menu, thereby making the KFC menu more suitable to the customers' taste and preferences.
Despite these advantages that Weston and Ohkawara had introduced in KFC-J, the company had experienced conflict with KFC-U.S. because of Weston's disregard for the changes implemented in managing KFC food stores all over the world. Weston reasoned that because of KFC-J was able to recover from its loss satisfactorily; it does not need any help from its mother company, who is also experiencing difficulties in managing its stores located domestically. But what makes Weston's argument disagreeable is that he failed to recognize that despite its exclusive operation from KFC-U.S., it is still part of the organization, therefore, he is entitled to cooperate and respond to the company's calls for implementing new managerial changes and plans for the succeeding years of KFC-J's operations. Disadvantages that emerge from KFC-J's autonomy from its mother company include: (1) the discontinuity of the "KFC heritage" in Japan; (2) internal conflict with the management because of differences in management strategies and techniques; and (3) tendency of Weston, as head of as vice-president for the North Pacific operations of KFC, to focus its attention on Japan only, and leave out management problems occurring from KFC's other branches in the North Pacific region.
The first problem is that KFC-J's independent operations serves as a detriment for the KFC brand in the country, mainly because it cannot be denied that what also entices the customers...
Again, Mc Donald's has managed to deal with competitive threats posed by both these market players due to the fact that the prices that Burger King, Starbucks and Costa Coffee charge are much higher than that charged by Mc Donald's. The primary reason behind higher prices of Costa Coffee and Starbucks is the fact that their target market is much stronger and niche as compared to that of Mc
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